Moscow, Russia – March 10, 2011 – “COMSTAR – United TeleSystems” JSC (“Comstar” or “the Company”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 84 Russian cities, with a presence in Ukraine and Armenia, today announces that the Company has completed the share buyback related to the statutory merger of Comstar with Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS.

The Company acquired a total of 22,483,791 Comstar shares (including shares underlying Global Depositary Receipts, “GDR”) representing 5.38% of the Company’s issued share capital for RUB 4.79 billion^[1].

As was announced on February 11, 2011, the Company’s buyback limit of 10% of its net asset value set under  Russian law was oversubscribed by approximately 1.5685 times on the basis of applications received. As a result, Comstar bought back its shares based on the pro rata ratio of approximately 0.6376 of a Comstar share for each Comstar share or GDR put.

GDR holders should contact Deutsche Bank Trust Company Americas (“DBTCA”), the depositary bank for Comstar’s GDR facility, for further information or questions regarding the buyback.

Additional information regarding the merger of Comstar with MTS is available at https://www.mtsgsm.com/merger/ and https://comstar.ru/en/for_investors/mts/.

^[1]As was announced on June 25, 2010, the Company’s Board of Directors set the buyback price at RUB 212.85 per one Comstar ordinary share.